1. Bonds & Climate Change State of the Market 2016 Brazil Edition Sean Kidney, CEO, Climate Bonds Initiative Sao Paulo 2 August 2016

2. Green bonds are making headlines 80 60 40 20 0 2016 target - $100bn PBoC estimate $41bn from China $43 year to date ($8bn from China) Muni / Provincial / City Development Bank Corporate Banks ABS

3. $93 tn institutional investors AuM -SRI = $21 tn global -$43 tn at UN Climate Summit -$20 tn insurers x10 climate investments by 2020 Central banks: PBOC, BoE, various others Investor interest Insurance $30tn Sovereign $6tn Funds managers, mutuals, foundations $27tn

4. > $10bn outstanding $1bn - 10bn outstanding < $1bn outstanding USA $24.8bn China $14.4bn Supra- nationals = $30bn Labelled Green Bonds France $15.6bn Latest figure: Brazil $1.05bn Germany $12bn Netherlands $11bn SA $1.27bn Aust $2bn

5. Renewables rather than transport

6. Green Bond Principles – ICMA Proceeds must go to green / Explain process for project selection; use 2 nd party review / Track proceeds; use auditor to verify / Report each year on details Rules for a new market Climate Bonds Standard & Certification: green definitions + assurance China: Central Bank-led France: “Energy and Ecological Transition for Climate” Label Moody’s green rating: quality of review & reporting G20 Green Bond recommendations

7. Expanding the investment landscape

8. $118bn labelled green bonds A $694bn climate- aligned bond universe $576bn unlabelled climate- aligned bonds

9. Climate-aligned bond universe USD $160.2bn RMB $239.3bn EUR $110.7bn GBP $58.2bn Range of Currencies Others $25 bn SEK $7.7bn CHF $12.7bn KRW $14.5bn INR $15.2bn RUB $16.9bn CAD $18.7bn AAA 15% AA 37% A 16% < BBB 6% No rating 16% BBB 10% 78% is investment grade

10. Transport & energy are the largest themes Transport 67% Energy 19% Multi-sector 8% Water 2% Buildings & Industry 2% Waste & Pollution control 1% Agriculture & Forestry1%

11. Climate-aligned bonds are in Brasil Western Europe: $195bn USA: $111bn China: $246bn Brazil climate-aligned Issued BRL 10bn Outstanding BRL 4.5bn

12. Brazil green & climate-aligned bonds Examples of climate-aligned Suzano Papel - paper/pulp 1,440m CPFL Energias – renewables 1,026m Sao Miguel de Gosto - wind 481m All America Lat Logistic - rail 4,112.2m All Malha Norte – rail 326.7m All Malha Paulista – rail 166.7m Concessao Metro RJ - rail 575m MRS Logistica - rail freight 1,530.7m Supervia - transit 300m Labelled green bonds BRF: EUR500m Suzano Papel: US$500m Climate-aligned outstanding

13. Opportunities in Brazil Agribusiness Forestry & paper Renewable energy

14. Roadmap 1.Blue-chip issuance 2.Market education 3.Fiscally efficient support & incentives 4.Aggregation vehicles 5.Grow green projects pipeline

15. Green Infra Investment & INDCs Investor-country dialogue India Brazil China

16. Potencial de Investimentos no Brasil pós COP 21 São Paulo, Brasil 2 de agosto de 2016